Customer Retention
Keep your customers MAKE MORE MONEY
Customer Retention marketing is based on customer behavior. Find out what your customers what, how they want it, and when they want it. AND Give it to them! Don’t be stingy, they are the ones paying the bills. Make them happy and keep them happy.
According to the Harvard Business Review, “some companies can boost profits by almost 100% by retaining 5% or more of their customers”. Because small business success depends so heavily on maintaining customer relationships, your business philosophy needs to be customer-centric.
We have all kinds of cool ideas to help you keep the studs in your barn.
1. What customers have done and are doing is the best indicator of what they will do.
Look at the following 2 scenarios:
- Customers who fit your demographics but never make a purchase.
- Customers you never targeted that make repeated purchases.
Now send a coupon to each group and response would be higher from the buyers (second bullet ) than the targeted group. It works because actual behavior is better at predicting future behavior than demographics .
2. Customers like to “win.”
Help your customer get the good vibes with promotions, give aways, thank-yous, etc. Promotions encourage behavior. Want your customers to act, you have to compel them, and if it makes them feel good they will keep responding.
3. Marketing is a conversation.
You put out some data and you have to record and understand the customer feedback. Let’s at typical customer behavior. You discover that every customer who has made at least 2 purchases, takes 20 days to make their second purchase. So if a first time buyer has made it passed 20 days without a second purchase…you should compel them with a promotion.
4. Some marketing campaigns are more profitable than others.
Put your money where it works best. You can make more with less. Allocate marketing dollars towards higher ROI efforts, and your profits will increase with a steady budget.
